D-Wave Quantum (NYSE:QBTS) Trading 4.2% Higher - What's Next?

Key Points

• D-Wave Quantum's shares surged 4.2% during trading, reaching a high of $15.99, despite a significant decrease in trading volume of 87% compared to the average session.
• The company reported a quarterly earnings loss of ($0.08) per share, missing estimates, but posted a 40.9% increase in revenue year-over-year, totaling $3.10 million.
• Despite recent downgrades from some analysts, D-Wave Quantum has a consensus rating of "Buy" with a target price of $19.27, supported by several analysts setting high target prices, including B. Riley's increase to $22.00.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) shares traded up 4.2% on Thursday . The company traded as high as $15.99 and last traded at $15.88. 8,661,991 shares traded hands during trading, a decline of 87% from the average session volume of 66,183,172 shares. The stock had previously closed at $15.23.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the stock. Wall Street Zen downgraded shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Williams Trading set a $20.00 price target on shares of D-Wave Quantum in a research note on Wednesday, June 18th. Benchmark reiterated a "buy" rating and set a $20.00 price target on shares of D-Wave Quantum in a research note on Monday, August 4th. B. Riley lifted their price objective on D-Wave Quantum from $20.00 to $22.00 and gave the company a "buy" rating in a report on Wednesday, July 23rd. Finally, Roth Capital reissued a "buy" rating on shares of D-Wave Quantum in a report on Friday, June 13th. Eleven equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus price target of $19.27.

D-Wave Quantum Price Performance

The stock has a fifty day moving average of $16.61 and a 200-day moving average of $12.05. The company has a quick ratio of 42.86, a current ratio of 42.99 and a debt-to-equity ratio of 0.05. The firm has a market capitalization of $5.51 billion, a P/E ratio of -15.37 and a beta of 1.41.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported ($0.08) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.03). D-Wave Quantum had a negative net margin of 1,263.92% and a negative return on equity of 118.87%. The business had revenue of $3.10 million during the quarter, compared to the consensus estimate of $2.55 million. The firm's revenue for the quarter was up 40.9% compared to the same quarter last year. Equities analysts predict that D-Wave Quantum Inc. will post -0.41 EPS for the current fiscal year.

Insider Activity

In other D-Wave Quantum news, CFO John M. Markovich sold 100,000 shares of the business's stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $18.00, for a total transaction of $1,800,000.00. Following the completion of the sale, the chief financial officer directly owned 1,558,753 shares of the company's stock, valued at approximately $28,057,554. The trade was a 6.03% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Roger Biscay sold 106,626 shares of the business's stock in a transaction dated Thursday, June 12th. The stock was sold at an average price of $16.85, for a total value of $1,796,648.10. Following the sale, the director directly owned 14,260 shares of the company's stock, valued at $240,281. This represents a 88.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 378,787 shares of company stock worth $6,389,513. Corporate insiders own 3.20% of the company's stock.

Institutional Trading of D-Wave Quantum

Several institutional investors and hedge funds have recently added to or reduced their stakes in QBTS. Fourth Dimension Wealth LLC acquired a new position in shares of D-Wave Quantum during the 4th quarter worth about $26,000. Reyes Financial Architecture Inc. acquired a new position in shares of D-Wave Quantum during the 2nd quarter worth about $29,000. Atlantic Union Bankshares Corp acquired a new position in shares of D-Wave Quantum during the 2nd quarter worth about $29,000. Parallel Advisors LLC grew its position in shares of D-Wave Quantum by 227.3% during the 2nd quarter. Parallel Advisors LLC now owns 2,206 shares of the company's stock worth $32,000 after buying an additional 1,532 shares during the period. Finally, Gables Capital Management Inc. acquired a new position in shares of D-Wave Quantum during the 2nd quarter worth about $37,000. 42.47% of the stock is owned by institutional investors.

About D-Wave Quantum

D-Wave Quantum Inc develops and delivers quantum computing systems, software, and services worldwide. The company offers Advantage, a fifth-generation quantum computer; Ocean, a suite of open-source python tools; and Leap, a cloud-based service that provides real-time access to a live quantum computer, as well as access to Advantage, hybrid solvers, the Ocean software development kit, live code, demos, learning resources, and a vibrant developer community.

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